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I am unable to remove the status from a published workflow.
You can only remove statuses from inactive workflows. To start with this workflow and remove statuses, make a copy of it which will be inactive. You can assign it to the project when you're happy with it.
How to proceed??
Welcome to the Atlassian Community!
You can only remove status from inactive workflows because active workflows may have issues in that status, and it would be a nightmare to have to migrate during a workflow editing session.